The Basics of Business Financing Options

Finance your business the right way with a business financing option tailored to your needs. There is a wide range of financial tools available, so it can be difficult for small businesses to find the best option. Create a successful business model and protect your business from uncertainty and slow seasons with one of these basic financing options.

Lines of Credit

A line of credit is an excellent option for flexible financing. Once you’re approved for a credit line, you’ll gain access to a short-term loan that you can use for any of your working capital needs. A line of credit is more open-ended than other loan options, so you can pay off your initial loan and continue to take out loans as long as you stay within your approved credit limit.

SBA Loans

The Small Businesses Administration offers 7(a) and 504 loans to small businesses that need financing for equipment, property and working capital. Choose the loan that matches your needs and apply it through a financial institution and the SBA. While these loans may take longer to become approved, they typically offer competitive rates and you can still become approved for one if you can’t receive traditional financing.

Equipment Financing

Finance your equipment to enjoy great rates and start using essential equipment from day one. Equipment financing typically doesn’t require a down payment and uses the machinery itself as collateral. Choose to lease items for a short term or finance them for a longer-term to enjoy affordable payments and own your equipment outright.

Merchant Cash Advances

Take advantage of your payment processing system to advance payments for your business. A merchant cash advance allows you to receive an early payment based on your typical credit card sales. After you receive the advance, you’ll simply pay a percentage of your daily or monthly sales until you pay the total agreed-upon amount.

Credit Cards

Business credit cards work just like personal credit cards to balance a cash flow issue and offer you excellent reward benefits. A credit card is a great short-term solution, but it can come with high-interest rates if you try to use it as a long-term option.

Compare these business financing options to find out how you can grow your business. Use two or more options or find the single option to cover your emergency expenses or boost your working capital for a growing season.

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